Should you buy SBI, PNB, BoB stocks after 1.38% decline in Nifty PSU Bank?

Following RBI Governor Sanjay Malhotra's announcement of a 25bps repo rate cut, Dalal Street witnessed volatility on Friday, February 7, 2025. The Sensex fell 198 points to 77,860, down 0.25 per cent, while the Nifty50 closed at 23,559.95, losing 43.40 points or 0.18 per cent amid selling pressure in financial and energy sector stocks, including ICICI Bank, ITC, Reliance, HDFC Bank, and SBI.

Sector-wise, the Nifty PSU Bank index plummeted 1.38 per cent to 6,196.75 from the previous day closing, marking the steepest decline. In the wake of this sharp correction in the PSU bank index, investors may wonder if it's an opportune time to book profits in scrips like State Bank of India (SBI) and Punjab National Bank (PNB)? Here's what analysts have suggested:

Nifty PSU Bank index falls 1.38%; Maharashtra Bank, SBI among over 10 scrips are top losers

The PSU Bank index closed 1.38 per cent lower at 6,196.75 amid selling pressure in nine stocks falling more than 1 per cent. Here's the of these nine stocks that dipped:

Analysts recommend buying several PSU bank stocks for long term; check out targets

Analysts from domestic and international brokerages have recommended several PSU Bank shares with a expected return of up to 42.58 per cent.

SBI Share Price Target

Mirae Asset Sharekhan has suggests buying State Bank of India shares for a target of Rs 980, which implies a potential upside of 33.07 per cent as of Friday closing at Rs 736.40, apiece on NSE.

Another brokerage JM Financial has a 'buy' stance on the SBI Stock with a target of Rs 940. According to the brokerage, it could rise up to 27.64 per cent in next one year.

While, global brokerages have mixed rating on SBI shares. Here's a summary:

PNB Share Price Target

Analysts from Motilal Oswal brokerage have recommended buying Punjab National Bank shares for a target of Rs 125, which indicate a return of 25.96 per cent as of CMP of 99.23. While JP Morgan has maintained an 'overweight' rating on the PNB stock with a target of Rs 140 which implies a potential upside of 41.08 per cent. Jefferies has maintained a 'buy' call on the stock with a target of Rs 120.

Bank of Baroda Share Price

Mirae Asset Sharekhan also recommends buying Bank of Baroda (BoB) shares for a target of Rs 280. According to the brokerage, the stock may yield up to a return of 29.47 per cent. Axis Securities' analysts also recommended buying the BoB stock at Rs 222 for the same target.

(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)